By Glen Hallick, MarketsFarm
WINNIPEG, June 18 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were mixed on Thursday, with July down and gains for the new crop months.
Support came from a lower Canadian dollar. The loonie was at 73.51 U.S. cents mid-afternoon, compared to Wednesday’s close of 73.77.
A trader said the rolling out of the July contract pushed canola bids so far upward, that there is pressure from traders to bring them back down.
He also noted that it remains too early to estimate canola yields, and there could be less planted acres than Statistics Canada estimated last month. The federal agency is scheduled to release its next crop area report on June 29.
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Saskatchewan Agriculture said spring planting is 99 per cent complete, and crop emergence and growth has been quite well. However, recent strong winds were drying out soil.
Rain is forecast for most of the Prairies today and Friday. A stretch of warm temperatures will begin over the weekend and push through next week.
There were 20,224 contracts traded on Thursday, which compares with Wednesday when 20,197 contracts changed hands. Spreading accounted for 11,432 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 472.30 dn 1.00
Nov 475.90 up 1.00
Jan 481.60 up 0.90
Mar 486.70 up 0.60
SOYBEAN futures at the Chicago Board of Trade (CBOT) were steady to higher on Thursday, as strong demand for new crop beans outmatched a lack of other supportive news.
The United States Department of Agriculture (USDA) reported in its weekly export sales report for the week ended June 11, there were 538,100 tonnes of old crop soybeans sold. New crop sales amounted to 1.38 million tonnes. Soymeal sales came to 124,000 tonnes of old crop and 58,000 tonnes of new crop. Soyoil sales totaled 6,400 tonnes.
U.S. Trade Representative Robert Lighthizer stated yesterday that the coming presidential election could increase tensions between the U.S. and China. In testifying before the House Ways and Means committee, he added that talks between the U.S. and China are continuing.
There are unconfirmed reports that China purchased four to six cargoes of soybeans yesterday from the U.S.
Brazil has exported 6.3 million tonnes of soybeans so far in June, and is on pace for setting a new record for the month. As Brazil’s exports in July are to wind down, that could provide an opportunity for more U.S. soybean sales.
CORN futures were steady on Thursday due to a lack of fresh news to provide direction.
Market concerns about hot and dry weather in the U.S. Corn Belt provided support. Rain has been forecast for most of the region in the coming days.
The USDA reported export sales of 357,800 tonnes of old crop corn and 114,800 tonnes of new crop corn.
China has purchased only 132,086 tonnes of U.S. corn so far in 2020, despite the Phase One trade agreement stipulating China is to buy 8.0 million tonnes this year.
WHEAT futures were mixed on Thursday with gains for Minneapolis and losses for Chicago and Kansas City.
U.S. spring wheat has been getting traction due to its protein content, according to a report. The winter wheat harvest is seeing lower than expected protein levels.
The USDA reported 504,800 tonnes in export sales of wheat.
A group of Russian grain exporters estimated the country’s wheat crop at 75 million tonnes. The USDA pegged Russian production at 77 million tonnes and other estimates called for 78 million.
In international sales, Ethiopia issued a tender for 400,000 tonnes of wheat. Japan made a tender for 76,143 tonnes from the U.S. and Australia. Egypt purchased 240,000 tonnes from Russia, Romania and Ukraine.
